BOUSTEAD, together with One North Energy Private and Lamara Energy, has entered into an agreement with ASX-listed Triangle Energy (Global) to acquire TEG's 100 per cent stake in the Pase Production Sharing Contract (PSC) in Aceh, Sumatra, for US$3.9 million.
The contract includes other potential purchase considerations which depend on the performance of the Pase PSC.
Boustead will own 83 per cent of the consortium, while One North and Lamara will hold the remaining 17 per cent. In addition, Boustead has agreed to carry the other consortium partners for 10-12 per cent such that the underlying economic interest (and shareholding in future) will be about 71-73 per cent and 27-29 per cent respectively. Boustead will be able to recover the amount of carry out of the consortium's cash flows.
Boustead's consortium partners are Singapore-based corporations founded and backed by individuals with years of combined experience in the oil & gas sector in Asia.
"The acquisition will provide the group with an excellent opportunity to expand its energy-related engineering division, which is the second largest revenue contributor to the group after the real estate solutions division," said Boustead.
As Pase PSC encompasses 922 square kilometres of explorable acreage and has a proven field containing natural gas reserves in Aceh, the group will be able to shift into upstream ownership, production and potential development of natural gas.
The purchase price will be funded through Boustead's internal resources.